The market has seen a lot of volatility this year. As a matter of fact, since January 2018 the market hasn’t been much higher than its starting point. Are you properly protected?
The key to investing is something often reported to financial advisors but may be new to the average investor - Upside/Downside Capture. In other words, how much of the upside of the market (S&P 500) is captured versus how much of the downside of the market is being lost. Obviously, you want to retain as much of the markets’ gains as possible while suffering as little of the losses
I manage my portfolios with this in mind and constantly analyze them against this measure.
Example:
If the S&P is up $2000 and there is a 90% upside capture that results in $1800 return to the portfolio
If the S&P is down $2000 and there is a 70% downside capture results in $1400 in losses to the portfolio.
The net would be $400 in gains for the portfolio where the index would be even.
Compounding return sequences like this over time could result in dramatic market outperformance and a less volatile portfolio balance.
If this makes sense to you and you think that your money is not being managed like this then contact me to investigate your options and how this type of money management can help you.
Please contact me to learn more.
The S&P 500 index is unmanaged and cannot be directly invested into. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful. Past performance does not guarantee future results.08/19
Jordan Kerner
Financial Advisor, Waddell & Reed, Inc.
Office: 475-619-2240 | Cell: 917-301-7274 | Fax: 203-557-6262
www.jordankerner.wrfa.com | jkerner@wradvisors.com
495 Post Rd E Ste 209| Westport, CT 06880